P/E/46 EMU and the Euro: advantages and disadvantages

The paper discusses the pros and cons of the EMU and the Euro.
The report started with the history of EMU.
One of the first issues to be raised by a 'euro-sceptic' is likely to be the loss of national sovereignty. The national currency has long been a symbol of a country's independence, often proudly bearing the head of a king, queen, president or other well known figure on coins and notes. The role which political union plays in EMU has been hotly debated. Some argue that EMU is as much about political integration as it is monetary integration, while others maintain that the two are completely separate issues. The reality is more likely to be somewhere in between.
Although the potential loss of sovereignty is perhaps the most commonly quoted negative aspect arising from the implementation of the euro, there are also a number of reasonably strong economic arguments which support the case against a single currency. One of the main benefits of EMU that is usually quoted in most literature is the reduction to transaction costs.